Posted on 05/27/2009 3:55:54 AM PDT by tobyhill
In the end, General Motors' massive cash needs likely trumped any chance of the automaker avoiding a bankruptcy court-supervised reorganization.
General Motors Corp. is expected to announce early Wednesday that only a small fraction of the holders of its $27 billion in bonds agreed to swap that unsecured debt for a 10 percent equity share of a recapitalized GM.
Reaching such an agreement was one of the requirements of the Obama administration, which already has committed $19.4 billion in aid and said it would only provide more funds if bondholders and unionized workers made concessions that substantially reduced GM's costs.
There was a small hope Tuesday that GM could avoid a bankruptcy filing when the United Auto Workers union disclosed that it would take a 20 percent stake in GM -- down from the original plan of 39 percent. That seemingly would have allowed the Detroit-based company to sweeten the pot for its recalcitrant bondholders.
(Excerpt) Read more at foxnews.com ...
So, can I just go pick out a car and drive it home?
Two words to gm... die b!tch!
LLS
Economists say the recession will end this year (2009). We are constantly hearing two distinct messages: Everything is okay, and everyone is cutting back drastically. I can NOT reconcile the two. One side is outright lying.
Nothing is going to get better with any kind of consistency until at least 2011....if by then.
Dear (owner)
For nearly 10 decades, Chevrolet has strived to earn the honor of "America's Brand." Tens of millions of customers just like you have trusted us to serve their transportation needs...and we value that confidence. That is why I am writing to you today. As everyone knows, these are turbulent times. The daily surge of headlines about the automotive industry can get discouraging. But I wanted to be certain that you know one very important fact: Chevrolet is focused on being your car company...committed to fulfilling your transportation needs in sales and service...both now and in the future.
I've had the honor of leading this Chevrolet team for more than four years...and I can assure that our people and our dealers are committed to your complete satisfaction with your Chevy ownership experience.
We cherish our proud 98-year history. But more important, we look forward to our exciting future. And we've already begun reinventing Chevrolet to serve your needs more effectively than ever. For example, no one offers more models with 30 MPG highway or better than Chevy. And right now, we are reengineering our showroom - with cars like our award-winning Malibu...with America's Best Truck, Silverado...with the newest star in family vehicles, the 8-passenger Traverse...with the 21st century sports car, Camaro.
Our 2010 Equinox will head to your local Chevy dealer this summer. And two more exciting products are scheduled to begin production next year - first is the awesome new Cruze, our new entry in the Compact Car segment, providing surprising cargo capacity and comfortable seating for five. Then, we will begin production of the Chevy Volt, the world's first Extended-Range Electric Vehicle. Volt is tomorrow's hope for an energy-challenged world...and the embodiment of the new Chevrolet. And all these new products are just the beginning!
As a valued member of the Chevy family, I hope you can see that you're part of a rich history and an exciting future. And we deeply appreciate your business. I'll stay in touch on all the happenings at Chevrolet. In the meantime if you have questions, please don't hesitate to contact Chevy Customer Service at cac@chevrolet,com.
Above all - thanks for letting us be such an important part of your life. And we look forward to celebrating our centennial with you in 2011.
Sincerely,
(Signed)
Ed Peper
North America Vice President, Chevrolet.
I think that Obama’s goal of giving GM to the UAW is running into some trouble. In the Chrysler deal most of the secured bond holders were “TARPies” who were arm-twisted by Obama into settling for a smaller payout than they had coming. Not so with the GM bond holders who want whats coming them. This is getting interesting.
They can go straight to hell and burn.
JUST SAY NO TO GOVERNMENT MOTORS
Who is John Galt?
They got the headline ALL wrong....should be “The UAW takes ownership of the US Taxpayer....we been PWNED
They go together. I'm okay, and I'm cutting back - not because I have to cut back but because I don't want to contribute to any economic activity that could strengthen TARP/Bailout companies or make it easier to the thug in our White House to push socialism through. On a broader level, they still make sense together. The media are trying to build obama up ("Everything is okay") while still stirring up uncertainty ("everyone is cutting back drastically") to sell papers to their few remaining readers.
As one of my gnomes observed 55% ( or whatever %) of a turd is still a turd...
I disagree.
The Baraqqis are going to force this thru using our tax money to make it happen.
At least thru 2012.
As the guy on CNBC said, expect the “mother of all incentives” to move the iron.
When I asked if they took TARP money, the answer was "NO Sir".
I then asked do you get that question a lot, the answer was yes...
Some people are "thinking" and may be trying to starve the beast....
My daughter just traded her Chevy Venture which has 103,000 miles on it and which she has spent over $5,000 dollars during that 103,000 on repairs in on a new Toyota.
My Toyota has 80,000 miles on it and I havent spent a dime in actual repairs just basic maintenance and front brakes.
GM terminated its bondholder swap offer.
the Federal government now looking to take 70% stake and 20% stake for UAW.
Bondholders clearly in better position in bankruptcy.
At this point, the bondholders should unite and force an INVOLUNTARY bankrupcty.
Though bankruptcy WITHOUT the Obama, I would buy a GM.
With Obama and that 70% plan, no way no how.
I have had conversations with Freepers off line, and friends that denote the UAW lines guys are pissed at "O" and are making fun of him.
The question is will Blue State Honda/Toyota drivers succumb to the latest trend i.e., patriotic guilt, yes people trading in their cars for American made ones, (it is happening according to a local dealer). My guess NOT......
How about all those clips of Obama making fun of people who said the fundamentals of America are sound.
Obama is just giving us john mccain warmed over.
Well I have 5k in repairs on my Toyota Camry. But then it has 275K on it and a brand new motor with a 36 K warranty.
Did someone give it to you or did you get it in the mail?
For an individual bondholder’s take on this theft, see:
http://online.wsj.com/article/SB124338330278956585.html
I got it in the mail.
WaPo says O will put at least another $50 billion in to carry GM through bankruptcy. FOX is saying between $70 and $100 billion.
Incredible. When will the weight of all these union bailouts sink the O Team?!
Another takeover by the communists in power now, and forced payment of taxpayers to fund the UAW/Messiah machine. In every “bailout” move, more and more of private production is being moved to the control of these overlords, assuring the Unions the funding and maintaining their over-priced contract and retirement costs are are force-funded by OTHERS (aka, taxpayers).
IMHO the Baraqqis are on thin ice with this one.
I don't think GM or Chrysler will have many customers.
Lefties typically buy foreign nameplates.
Conservatives will shy away from Government Motors.
Looks like an economic sinkhole.
Maybe that is what is needed to bog down the Baraqqi assault on America.
Looks like NASCAR will be running Toyotas and Fords.
An Eco-Boost V6 Taurus at NASCAR, now running what you can get in the dealer, that will generate some interest, Oh that was tried before like in the 60's and 70's !!!!
Isn’t it possible to return to the days of the “stock car” racing?
That is my future!
LLS
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